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[EQUITIES] ‘SM Entertainment suffers from TVXQ’s absence’

[THE INVESTOR] SM Entertainment’s third-quarter operating profit will fall 34 percent to 7.5 billion won (US$6.63 million) from the same period last year, and standalone sales will be down 7 percent to 54.7 billion won, according to Shinhan Investment on Oct. 21.

In addition to the revenue from albums, downloads and appearances, “concerts including EXO’s seven, Yesung’s three, Taeyeon’s three in Korea as well as SHINee’s Japan concert with 430,000 attendance, will boost its bottom line. The company, however, will still be hurt by the absence of TVXQ’s concert that had 680,000 in attendance last year,” explained the securities firm.

SM Entertainmnet Chairman Lee Soo-man
SM Entertainmnet Chairman Lee Soo-man

For 2016, standalone sales will slip 1 percent down to 194.9 billion won and operating profit will fall 10 percent to 20.7 billion won on-year, forecast Shinhan, projecting a brighter outlook for 2017 as TVXQ and Super Junior are set to make a comeback.

By Hwang You-mee (glamazon@heraldcorp.com)


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